What I’m Reading
Off to the Races: Through the first three months of the year, 2022’s national rent growth is ahead of even 2021’s record pace, according to Zumper’s National Rent Report published last week. Zumper Its almost as if home ownership becoming completely unaffordable creates more renters or something.
Time Machine: Bloomberg posted an article and I had to check the date to see if it was first published in 2006. The piece outlined how cash-out refis are enabling newbie investors to buy second or third houses— or more — to capitalize on surging rental demand. Bloomberg What is legitimately different this time around is that the loans being used would have been 100% LTV negative amortization exploding mortgages back in the day. Still, this just feels frothy.
Next Big Thing: Institutional investors are waking up to the reality that ecommerce requires massive – and growing – fleets of vans and trucks in order to achieve ever-faster delivery targets. With limited supply, low vacancy rates and far less upkeep than traditional warehouses, industrial outdoor storage is an asset class that’s go for liftoff. Globe Street
Playing Catch Up: Its becoming increasingly obvious that the Federal Reserve is behind the curve when it comes to interest rate policy. This introduces the risk that they over-correct and get too aggressive in an effort to”catch up” to the economy. Pragmatic Capitalism
Lockdown: China has announced its biggest city-wide lockdown since the Covid outbreak began more than two years ago. The city of Shanghai will be locked down in two stages over nine days while authorities carry out Covid-19 testing. BBC News IOW, expect more volatility
Chart of the Day
In 2005, 2 out of 5 mortgages had adjustable rates. Today, its less than 1 out of 100.
Source: Len Kiefer
WTF
What a Way to Go: A man died after crashing his car into an 11-foot long alligator because Florida. CTV News
Scapegoat: A man who was pulled over for speeding attempted to place blame on Russian President Vladimir Putin during the traffic stop because Florida. Fox 35
Basis Points – A candid look at the economy, real estate, and other things sometimes related.
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